In a move to spur sales of the Xbox One and catch up with rival Sony's PlayStation 4, Microsoft says it will start selling the console without the Kinect sensor, which cuts $100 from the price.
The new price of $399 begins June 9.
Microsoft says it is also allowing entertainment apps like Netflix to be used without having to pay for an Xbox Live Gold membership, which costs $60 a year.
The membership will continue to be required for multiplayer games but will also provide discounts on games and free games.
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